meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc awards $1.34bn Estidama project contracts

3 July 2023

 

Register for MEED's guest programme 

Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has awarded contracts for two key packages of its project to upgrade its sales gas pipeline network across the UAE.

The total value of the two engineering, procurement and construction (EPC) contracts for the project, also known as Estidama, is estimated to be $1.34bn, Adnoc Group said in a statement on 3 July.

UK-headquartered Petrofac has been awarded the EPC contract for package 2 of the Estidama project. Package 2 is understood to be worth $720m, sources told MEED.

A consortium of Abu Dhabi’s National Petroleum Construction Company (NPCC) and Lebanon-headquartered CAT Group has won Estidama package 3, which is valued at approximately $630m, according to sources.

The new pipeline will extend Adnoc Gas’ existing 3,200-kilometre pipeline network to over 3,500km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.

“This strategic pipeline extension will drive further growth for Adnoc Gas as it continues to supply sustainable gas supplies in the UAE in support of the company’s strategy to increase its market share and enhance its customer base,” Adnoc said in its statement.

Over 70 per cent of the contracts’ value is expected to flow back into the UAE economy under Adnoc Group’s In-Country Value (ICV) localisation scheme, Adnoc added.

Key Estidama packages

Adnoc Gas Processing, now part of Adnoc Gas, initially intended to issue separate EPC tenders for packages 2 and 5. However, it tendered these as a combined job in June last year. Contractors submitted technical bids for these packages in August 2022.

Eventually, Adnoc Gas divided the scope of work on combined packages 2 and 5, MEED reported in February this year.

Following the revision of the scope of work, Estidama package 2 broadly involves building a new facility at the KP-30 location of the Habshan gas compressor plant (HGCP) and installing three variable frequency drive motor-driven compressors.

Adnoc Gas received technical proposals for Estidama package 2 on 24 February. Contractors submitted commercial bids by 27 March.

Along with Petrofac, the following contractors, among others, are understood to have submitted commercial bids for Estidama package 2:

Package 5 is expected to be tendered separately to contractors as part of a planned second phase of the sales gas pipeline upgrade project.

ALSO READ: Gas takes centre stage in Adnoc downstream expansion

Adnoc Gas issued the main tender for Estidama package 3 in late June last year.

Contractors submitted technical bids for the package in August 2022, while commercial bids were submitted by 21 November.

MEED previously reported that Italy-headquartered Arkad was the lowest bidder for package 3, with a quotation of about $590m. A source close to the project said that following months of “intense negotiations, due diligence processes and evaluation of project delivery capabilities”, Adnoc Gas picked the consortium of NPCC and CAT for the package.

The scope of work on package 3 covers the installation of new gas pipelines from the Habshan complex to the HGCP, and from the HGCP to the Sweihan customer receipt, along with associated facilities.

Sales gas pipeline project packages

Erstwhile Adnoc Gas Processing, now consolidated into Adnoc Gas, initially divided the EPC work on its estimated $2bn sales gas pipeline network enhancement project into seven main packages.

China Petroleum Pipeline Engineering performed the Estidama project’s front-end engineering and design works as part of a contract worth about $6m that Adnoc Gas Processing awarded the Chinese state-owned firm in October 2020.

MEED reported in December 2021 that Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) had won package 1, which is understood to have a contract value of $18m.

Iscco subcontracted the detailed engineering works on package 1 to the Abu Dhabi branch of Sweden-headquartered consultancy Rejlers.

Adnoc Gas issued the main tender for package 6 and packages 3 and 2+5 in late June last year.

Contractors also submitted technical bids for package 6 in August 2022 and commercial bids by 21 November.

Work on package 6 entails the installation of a 52-inch, 74km pipeline from Sweihan to Al-Shuwaib in Abu Dhabi and building two block valve stations.

Adnoc Gas combined the scope of work on packages 4 and 7, and issued the main tender in November last year.

Contractors submitted technical bids for combined package 4+7 by 27 March. The project operator is yet to call for commercial bids for this package.

The main scope of work on the Estidama combined package 4+7 involves laying a new pipeline from the Al-Shuwaib pig launcher and pig receiver station to the Sajaa gas facility in Sharjah.

The scope also covers building a new gas pipeline between BVS-2/KP28.7 in Abu Dhabi to Dubai’s Margham gas facility to meet increased gas demand from Adnoc Gas Processing’s customer Dubai Supply Authority (Dusup).

“Up to a dozen contractors are likely to have submitted technical bids for [combined package] 4+7,” one source said.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10980546/main.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • UAE firm wins contract for battery storage project

    10 October 2025

    Etihad Water & Electricity (EtihadWE) has won the award to develop the UAE’s largest grid-side energy storage project to be awarded through open tender. 

    Its subsidiary, Emirates Utilities Development Company (EUDC), will develop and operate the project, its first since its establishment.

    Chinese firm Dongfang International has been appointed as the EPC contractor.

    Called Bess 1, the project closely follows the model of Abu Dhabi’s independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

    The contract was signed at the Ministry of Energy in Abu Dhabi in the presence of senior officials from Dongfang Electric Corporation, EtihadWE and EUDC. 

    In April, MEED reported that Ewec had received proposals for the facility, which is expected to provide a total storage capacity of close to 1GWh across two sites, Al-Bihouth and Madinat Zayed. It will also include supporting booster stations.

    It is understood that the ESA will be for 15 years, commencing on the project’s commercial operation date, which falls in the third quarter of 2026. 

    The overall capacity of deployed bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

    The report named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14843641/main.jpg
    Mark Dowdall
  • Ashghal seeks firms for sports facilities upgrade

    10 October 2025

     

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting consultants to bid for post‑contract professional consultancy services for the upgrade and renovation of Ministry of Sports & Youth facilities in the south sector.

    The assets include Qatar Bowling Centre, Al-Ahli Sports Club, Al-Arabi Sports Club, Al-Sadd Sports Club, Qatar Sports Club, Al-Wakrah Sports Club, Gharrafa Sports Club, Duhail Sports Club and Al-Khor Sports Club.

    The notice was issued on 5 October, with a closing date of 26 October.

    The contract duration is two years and seven months, which includes a 400‑day maintenance period.

    The latest notice follows tendering for the construction of roads and infrastructure in the town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14843114/main.png
    Yasir Iqbal
  • Tendering begins for $1bn Sal Riyadh logistics centre

    10 October 2025

    Saudi Arabia’s Sal has started the tendering process for its upcoming SR4.2bn ($1bn) logistics zone in Falcon City, north of Riyadh.

    The tender for the earthworks package was issued on 21 September, with a submission deadline of 7 October.

    UAE-based Global Engineering Consultants is the project consultant.

    Earlier this week, the firm signed a lease agreement for the project, which will span about 1.57 million square metres (sq m). 

    According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”

    The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.

    The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    Sal and Sela signed an agreement to develop the project in March.

    GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects. 

    The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.

    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14842592/main.gif
    Yasir Iqbal
  • Oman tenders consultancy for dams and reservoir study

    10 October 2025

    Oman’s Ministry of Agricultural, Fisheries Wealth & Water Resources has opened bidding for consultancy services covering feasibility studies and detailed designs for recharge dams, artificial reservoirs and flood protection dams in Wilayat Mahdah, Al-Buraimi governorate.

    The bid submission deadline is 16 November.

    The selected consultant will conduct a comprehensive feasibility study for 10 proposed sites.

    Based on this study, detailed engineering designs and tender documents will be prepared for five dams and three artificial reservoirs at priority locations to be approved by the ministry.

    The projects are aimed at enhancing groundwater recharge, improving water balance and securing sustainable resources to support future agricultural expansion and investment in the area.

    The work also includes the design of flood protection dams upstream of the Al-Rawḍah Special Economic Zone to reduce flash flood risks and safeguard planned developments.

    In addition, the consultant will study drainage channels from the recharge and flood protection dams to the beneficiary areas. The total channel length is estimated at about 50 kilometres, the authority said.

    Tender documents will be available to purchase until 27 October. A tender fee of RO300 and a bond equivalent to 1% of the quoted value are required.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14842491/main.jpg
    Mark Dowdall
  • Eni restarts oil and gas exploration in Libya

    10 October 2025

    Register for MEED’s 14-day trial access 

    The Italian oil and gas company Eni has restarted oil and gas exploration activities in Libya after a five-year hiatus.

    Eni’s North African unit has resumed work on exploratory well C1‑16/4, located off Libya’s northwest coast, according to the National Oil Corporation (NOC).

    In March 2020, Ensco’s 4005 rig began drilling the C1‑16/4 well and reached a depth of 1,012 feet before operations were halted due to the Covid‑19 pandemic.

    Ensco’s rig has now been replaced with Saipem’s Scarabeo-9, a sixth-generation semi-submersible drilling rig of Frigstad D90 design.

    The Scarabeo‑9 is re‑entering the well to complete drilling operations, aiming to reach a planned final depth of 10,520 feet, the NOC said.

    The exploratory well C1-16/4 is situated in Contract Area D, previously known as MN 41.

    It lies at a water depth of about 743 metres, approximately 95 kilometres from the Libyan coast and around 15km from the Bahr Es Salam gas field.

    Eni’s return to upstream exploration comes in the wake of US-based ExxonMobil signing an agreement to return to the North African country.

    On 4 August, Exxon signed a memorandum of understanding (MoU) with the NOC in London.

    Under the terms of the non-binding MoU, ExxonMobil agreed to conduct a detailed technical study of four offshore blocks located near Libya’s northwest coast and the Sirte Basin.

    Libya is trying to increase its national production capacity to 2 million b/d from the current level of around 1.3 million b/d.

    READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

    Distributed to senior decision-makers in the region and around the world, the October 2025 edition of MEED Business Review includes:

    > AGENDA 1: A new dawn for PPPs
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14841969/main4339.jpg
    Wil Crisp